HOUSE MEMORIAL 62

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Nathan P. Small

 

 

 

 

 

A MEMORIAL

REQUESTING THE TAXATION AND REVENUE DEPARTMENT TO CONVENE A TASK FORCE TO CONDUCT A COMPREHENSIVE STUDY OF TAX CENTRALIZATION, UNIFORM SHORT-TERM RENTAL CLASSIFICATION AND THE BROADER ECONOMIC IMPACTS OF SHORT-TERM RENTALS ON TOURISM, WORKFORCE DEVELOPMENT, RURAL INFRASTRUCTURE AND LOCAL SERVICE FUNDING.

 

     WHEREAS, short-term rentals have become an integral component of New Mexico's hospitality and tourism ecosystem, generating more than one billion dollars ($1,000,000,000) in statewide economic impact and supporting thousands of jobs in communities throughout the state, including rural and high- tourism regions such as Taos, Santa Fe and Bernalillo counties; and

     WHEREAS, short-term rentals support diversified lodging that attracts visitors to New Mexico's cultural, historic and outdoor assets, directly benefiting restaurants, retail establishments, guides, outfitters and other small local businesses; and

     WHEREAS, economic activity involving short-term rentals has a measurable employment multiplier, expanding work opportunities for cleaners, maintenance professionals, freelance contractors, virtual property managers and service workers who contribute to workforce development and local business vitality; and

     WHEREAS, short-term rentals also provide supplemental income that enables New Mexico families to sustain home ownership and invest in their communities, thereby reinforcing the entrepreneurial spirit prevalent across the state; and

     WHEREAS, inconsistent property tax classification practices by county assessors, including disparate reclassifications of short-term rental properties from residential to nonresidential status, have introduced regulatory uncertainty and the potential for significant tax increases that could unintentionally destabilize tourism- related supplemental income streams; and

     WHEREAS, rural municipalities often lack a dedicated administrative capacity to uniformly collect occupancy taxes and gross receipts taxes, resulting in revenue leakage that could otherwise be directed toward essential local services, public safety, road maintenance, water and wastewater infrastructure and broadband expansion in rural New Mexico; and

     WHEREAS, centralized tax collection mechanisms and uniform classification frameworks, developed with robust stakeholder participation, may provide a path to ensuring that rural cities and counties receive their fair share of revenue to fund infrastructure and core services equitably; and

     WHEREAS, the work group convened by the taxation and revenue department, the tourism department and the economic development department pursuant to House Memorial 52 passed during the 2025 regular legislative session provided valuable insights into the economic impacts, tax variability and classification challenges statewide, underscoring the value of a comprehensive statewide study prior to codifying permanent tax or classification changes;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the taxation and revenue department, in coordination with the tourism department, the New Mexico municipal league and the New Mexico association of counties, be requested to convene a task force to conduct a comprehensive study of:

          A. the feasibility and fiscal impacts of centralized collection and remittance of local lodgers' tax and gross receipts tax related to short-term rentals, including potential implications for rural and under-resourced communities;

          B. a uniform framework for short-term rental property classification that balances residential property protections with appropriate contributions and provides consistency across all of the counties in New Mexico;

          C. the broader economic contributions of short-term rentals to workforce development, small business opportunity creation and the entrepreneurship ecosystem in New Mexico; and

          D. the potential for centralized tax revenue structures to enhance funding for rural infrastructure, public safety, affordable housing initiatives and essential local government services; and

     BE IT FURTHER RESOLVED that the task force include designated representatives from the taxation and revenue department, the tourism department, the New Mexico municipal league, the New Mexico association of counties, the New Mexico short-term rental association, a short-term rental platform, the New Mexico association of realtors, rural municipal officials, county treasurers and workforce development and small business stakeholders; and

     BE IT FURTHER RESOLVED that all county assessors be requested to pause any new or ongoing property tax reclassifications of short-term rental properties until the findings and policy recommendations of this study have been presented to the appropriate interim legislative committees; and

     BE IT FURTHER RESOLVED that the comprehensive study include recommendations on alignments with requirements of the Lodgers' Tax Act, potential statutory changes to support centralized tax collection and strategies to direct economic gains toward public infrastructure and local service funding in under-resourced communities; and

     BE IT FURTHER RESOLVED that the task force be requested to submit its findings and recommendations to the appropriate interim legislative committees by October 1, 2026; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor, the secretary of taxation and revenue, the secretary of tourism, the president of the New Mexico municipal league and the president of the New Mexico association of counties.

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